Social Institute withdraws from agreements with banks
The National Social Security Institute has terminated agreements with banks for the granting of loans on the assignment of one fifth of salary and pension. A choice that came in order to implement the changes introduced by decree number DT24126 of the Ministry of Economy and Finance, issued on March 27, 2017.
The changes made by the MEF decree
The aforementioned decree established the new average global effective rates for the purposes of the anti-usury law as well as the consequent threshold rates that entered into force from April 1, 2017. But that’s not all.
The decree DT24126 in fact also modified the classes of amount relevant for the purposes of financing operations on the sale of one fifth of the pension or salary.
Until March 31, 2017 in fact the amount classes were: less than 5 thousand and greater than 5 thousand USD. From the first of April, on the other hand, the loan amount classes have been re-modulated into: less than 15 thousand USD and greater than 15 thousand USD.
What has changed since April 2017
Consequently, as stated in the press release issued by Social Institute, the convention scheme approved on March 30, 2016 and used to date refers to the parameters for calculating the conventional threshold rates in force until March 31, 2017 and for this reason it is no longer valid. In other words, the convention scheme refers to old parameters that are no longer in force.
Not having the possibility to immediately adapt to the technical and contractual fulfilments established by the decree of the Ministry of Economy and Finance, Social Institute has decided to avail itself of the unilateral withdrawal faculty relating to the agreements signed with banking institutions and financial intermediaries.
For this reason, starting from the entry into force of the aforementioned decree, all the agreements stipulated by Social Institute are no longer active.
The new conditions
In any case, Social Institute ensures that all the companies under the agreement can still enter into new loan contracts on the assignment of one fifth of the salary or pension as early as April 2017. Contracts which, however, can only be signed under the accreditation regime.
However, it will soon be possible for banks and credit institutions affiliated with Social Institute to operate under an agreement, but only after the approval of a new conventional scheme by the social security institution.
The IT procedures relating to the granting of loans on assignment of the fifth will be suspended for the period necessary to make the adjustment to the new regulations.